Sawmill workers to get redundancy payments

Workers who lost their jobs when a Rotorua sawmill closed last month are to get an initial payment of nearly half the money owing to them.

Receivers KordaMentha confirmed on Friday the former Tachikawa plant workers will receive a payment of 43 cents in the dollar of money owed.

First Union, which represents 80 of the 120 sawmill staff, says most workers were owed around $20,000 and each will receive about $8000.

Union general secretary Robert Reid said redundancy money will be paid first, and in that way it will not interfere with any benefit payments that people are on. Workers are also owed wages and holiday pay.

Mr Reid expects the workers will receive another payment from the receivers in February, although how much has still to be determined.